BME International

Key Budget Proposals

INCOME TAX
1) Salaried Taxpayers
a. Income Tax Exemption to be maintained at Rs. 600,000 per annum
b. Slabs being revised

2) Exporters to be taxed under normal tax @ 29% (as against fixed tax @ 1%)

3) Capital Gain on Real Estate & Securities @ 15% for filer and 45% for non-filer

4) Withholding Income Tax on transfer of Immoveable property (separate tax rates for timely filer of return, delayed filer and non-filer)

5) Advance Income Tax to be collected from Non-filer Distributor, Wholesaler, Dealer and Retailer to be increased from 1% to 2.25%

6) Income Tax on registration of Motor Vehicles to be shifted from Engine Capacity to Value

SALES TAX
7) Sales tax on Textile and leather to be increased from reduced rate 15% to standard 18%

😎 Standard 18% Sales Tax rate on Mobile phones

9) Sales Tax withholding regime for Bronze, Coal and Plastic scrap

10) Sales Tax exemption on Iron and Steel scrap

11) End of exemption for FATA / PATA newly merged districts

12) Default Surcharge rate to be changed from 12% to KIBOR+3%

13) Sales Tax to be charged at time of supply or the time when any payment is received by the supplier in respect of that supply, whichever is earlier

14) Best Judgment Assessment concept introduced in Sales Tax

15) Electronic sales invoicing to be made mandatory by all

#بجٹ

https://youtu.be/9NjNB8oJwAo?si=SMkuNwDDhmQLc6t0

Property Tax Calculation | Property Tax | Rental Income | Barrister Kamran Ilyas This video is your one-stop guide to understanding rental income tax in Pakistan (as of 2024). We'll break down everything you need to know, including proper...

ایف بی آر کا الیکشن سے قبل تاجروں کیلئے ریٹیلر اسکیم متعارف کرانے کا اعلان
فیڈرل بورڈ آف ریونیو(ایف بی آر) نے عام انتخابات سے قبل تاجروں کے لیے ریٹیلر اسکیم متعارف کرانے کا اعلان کردیا۔

ذرائع کے مطابق ایف بی آر نے تاجروں کی رجسٹریشن کے لیے ’تاجردوست‘ موبائل ایپ تیار کرلی ہے۔

ایف بی آر کے مطابق ٹیکس نیٹ سے باہر تاجروں کو دوست ایپ کے ذریعے رجسٹرڈ کیا جائے گا۔

ذرائع کا کہنا ہے کہ دوست ایپ کے ذریعے پہلے مرحلے میں اسلام آباد، کراچی، لاہور، پشاور اور کوئٹہ کے تاجروں کی رجسٹریشن کی جائے گی جبکہ دوسرے مرحلے میں دیگر شہروں کے تاجروں کی رجسٹریشن شروع کی جائے گی۔

مذکورہ ایپ کے ذریعے دکانداروں کی آمدن کا ریکارڈ ایف بی آر کو موصول ہوگا۔ ان پر دکان کے سائز اور سالانہ آمدن کے مطابق ٹیکس عائد کیا جائے گا جو ماہانہ بنیاد پر وصول کیا جائےگا۔ اسکیم کے تحت تمام شعبوں سے منسلک کاروباروں اور افراد پر ٹیکس عائد کیا جائے گا۔

ان کا کہنا ہے کہ پہلے مرحلے میں توقع کی جا رہی ہے کہ اسلام آباد، کراچی، لاہور، پشاور اور کوئٹہ میں ریٹیلرز سے 100 ارب روپے تک ٹیکس وصول کیا جائے گا جبکہ ملک بھر کے ریٹیلرز پر ٹیکس لگائے جانے سے تقریبا 300 ارب سے زائد آمدن متوقع ہے۔

Tax Rates for Marriage Gatherings in Pakistan for 2024
January 23, 2024
Karachi, January 23, 2024 – As the tax year 2024 kicks off, the Federal Board of Revenue (FBR) in Pakistan has unveiled the updated income tax rates applicable to functions and gatherings, specifically those organized in the context of marriage ceremonies.

The changes come as part of the FBR’s efforts to streamline tax collection and ensure a fair contribution from various sectors.

According to the FBR’s notification, the Income Tax Ordinance of 2001 has been revised to incorporate advance tax rates on functions and gatherings held in marriage halls, marquees, hotels, restaurants, commercial lawns, clubs, community places, or any other venues designated for such purposes. The objective is to regulate tax collection from those arranging or hosting events in these locations, with certain conditions and limitations in place.

Under the updated ordinance, every prescribed person, defined as the owner, lease-holder, operator, or manager of a venue, is mandated to collect advance tax at rates specified in Division XI of Part IV of the First Schedule. This tax is applicable to the total amount of the bill for hosting the event. Additionally, if any other person provides food, services, or other facilities, the prescribed person must collect advance tax on the payment for such provisions.

The FBR has clarified that the advance tax collected under these provisions is adjustable. This means that individuals and entities organizing events can offset the tax amount against their total tax liability, providing some flexibility in the overall tax structure.

The newly defined scope of “function” includes a wide array of events such as weddings, seminars, workshops, sessions, exhibitions, concerts, shows, parties, or any other gatherings held for similar purposes. This comprehensive definition ensures that a variety of events are covered under the purview of the income tax regulations.

For the determination of tax rates, the FBR has established a clear distinction between income tax return filers and non-filers. Income tax return filers will be subject to a 10% tax rate, while non-filers will face a higher rate of 20%. This categorization aims to incentivize individuals and businesses to fulfill their tax obligations by offering a reduced tax burden for those who comply with the income tax return filing requirements.

The FBR’s decision to differentiate tax rates based on filing status is a strategic move to encourage tax compliance among the populace. By providing a lower tax rate for return filers, the authorities hope to promote a culture of tax transparency and responsible financial conduct.

The updated income tax rates for marriage gatherings in Pakistan for the tax year 2024 bring a nuanced approach to tax collection. The FBR’s focus on ensuring equitable contributions from event organizers, coupled with the incentive for income tax return filers, reflects a commitment to a fair and balanced tax system in the country. As individuals and businesses navigate these new regulations, it is essential to stay informed and comply with the prescribed tax requirements to contribute to the nation’s economic development.

“The hardest thing in the world to understand is the income tax.”

We are here to serve you. If you need your business financials to be streamlined. Contact us.

Tax Year 2022

Income Tax Return
Deadline: 30 Sep 22
For getting it filed by professionals with supporting computation/working & Tax
Planning for next year.

Muhammad Usman
Income Tax Practitioner
Contact: 0333-5848884

*30% Tax on Salaried Individuals*

💢 IMF demanded flat 30% tax on individuals earning between Rs.104,000 to Rs.1million monthly. This tax rate is even higher than companies tax rate of 29%

💢 *It means individual earning Rs.104,000 monthly would now earn approx Rs.70,000 monthly after june 2022, if budget approve this proposal.*

💢 Currently, the 30% tax rate is charged from those who earn Rs4.1 million a month.

💢 FBR suggested 15%, for those who earn over Rs100,000 to Rs333,000 a month

💢 Currenrly 15% is charged with person who earn over Rs208,000 a month.

💢 The IMF also demanded to slap 20% tax rate on income of below Rs104,000 per month.

💢 IMF is also asking for the pensions to be taxed, either at the contribution or at the withdrawal stage

💢 IMF proposal would result in additional revenue of Rs96 billion, bringing the total taxation from individuals to around Rs220 billion. *This amount would be used for interest and loan repayment payment to IMF*

💢 Ministry of Finance on Thursday claimed that negotiations with IMF under the 7th review are continuing.

💢 Inflation in Pakistan recorded at 12.3% last month, which is the highest in South Asia and one of the highest in the world

ملک بھر میں کاغذی اسٹامپ پیپرز کا 74 سالہ نظام ختم،

آن لائن کوڈ سسٹم بلیک اینڈوائٹ نظام لاگو...!

(50 روپےوالےاسٹامپ پیپرختم۔ اب جاری واستعمال نہ ہوسکیں گے)

آن لائن کوڈ سسٹم کے تحت ۔۔ 100،200،600 اور1200 روپےکے 4 مختلف پیپرزجاری ہونگے۔۔!

1200 والےاسٹامپ پراپرٹی، معاہدوں، ایگریمنٹس کیلئے استعمال ہونگے۔۔!

600 والےاسٹامپ مختارنامہ کیلئے۔۔!

200 والےاسٹامپ ملٹی پرپز کیلئےاستعمال میں لاٸےجائیں گے۔۔!

100 روپےوالےاشٹام پیپرز پانی،بجلی،سوئی گیس،ٹیلی فون،کنکشنوں کےبیان حلفی عدالتوں میں جمع کرائےجانیوالےبیان حلفی کیلئےاستعمال ہوسکےگے۔۔!

نٸے سسٹم کےتحت ہراسٹامپ فروش کولیپ ٹاپ، پرنٹر اورانٹرنیٹ لازمی رکھناہوگا اور اسٹامپ پیپر فروش کےاضافی اخراجات ختم ہونگے۔۔۔۔!!

وفاقی کابینہ نے حکومتی کی تیسری ٹیکس ایمنسی اسکیم کا آرڈیننس جاری کرنے کی منظوری دے دی ۔

آرڈیننس کی سمری کے مطابق صرف 5 فیصد ٹیکس ریٹ پر اب کالا دھن سفید کیا جاسکتا ہے۔

ٹیکس ریٹ کی ادائیگی پر کالادھن سفید کرنے والوں سے اُن کے ذرائع آمدن نہیں پوچھے جائیں گے۔

سمری کے مطابق سرمایہ کار ایمنسٹی اسکیم سے فائدہ اٹھانے کے لیے نئی کمپنی بنائے گا، اس سے فائد اٹھانے کی کٹ آف ڈیٹ دسمبر 2022ء ہوگی۔

آرڈیننس سمری کی مطابق نئے یونٹ کے ذریعے جون 2024ء تک کمرشل پیداوار شروع کردی جائے، ایمنسٹی اسکیم میں بیمار صنعتی یونٹس کے لیے 3سال کی ٹیکس مراعات بھی شامل ہیں۔

سمری کے مطابق بیرون ملک پاکستانی غیرملکی اثاثے سرمایہ کاری کے لیے بھیجتے ہیں تو 5 سال کے لیے ٹیکس چھوٹ ہوگی۔

سمری کے مطابق گزشتہ 3 سال سے نقصان والی کمپنیوں کو صحت مند صنعتی یونٹ خرید سکتا ہے اور کمپنی کو منافع بخش بنانے پر کمپنی کو 3 سال کی ٹیکس چھوٹ ہوگی۔

Online File Your Income Tax Returns 2021 Or Be a Filer In FBR.
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FBR extended the last date for filing monthly sales tax return up to 25.02.2022.

The revenue body in an official communication announced the extension in date of payment and submission of sales tax and federal excise return for the tax period January, 2022.

The federal government on Wednesday announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.

A statement issued by the Finance Division, an arm of the Finance Ministry, said that the government had decided to give 15 per cent disparity allowance on running basic pay to less privileged employees from BS-1 to BS-19 with effect from March 01, 2022. The above package is also recommended to the provinces for adoption from their own funds.

The federal government has imposed additional sales tax ranging between 5 and 17 per cent on supply of electricity and gas to the non-filer industrial and commercial entities in an attempt to broaden the tax base.

The additional taxation on the industrial and commercial entities that did not exist on tax roll — income tax and sales tax — was one of the budgetary proposals given by the Pakistan Business Council.

According to a notification (SRO1222 of 2021), the additional sales tax will be levied on the total billed amount excluding the amount of federal taxes besides the tax payable on supplies of electricity and natural gas to persons having industrial or commercial connections.

“I like to pay taxes. With them, I buy civilization.”

"What we think, we become."

The hardest thing in the world to understand is the income tax